Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 2525 entitled:

begs leave to report as follows:

The purpose of this bill is to ensure that when contractors bid on public works construction projects, it is done pursuant to standards that are fair, equitable, and uniformly applied.

The Department of Labor and Industrial Relations (DLIR) and the Pacific Resource Partnership testified in support of this measure.

The purpose of chapter 104, Hawaii Revised Statutes, is to ensure a level playing field for contractors who bid on public works construction projects. Chapter 104 requires that prevailing wage, overtime, recordkeeping, and other provisions are inserted in every State and county public works contract over $2,000.

However, problems have arisen when some State and county agencies have inadvertently omitted these specific provisions from their contracts and specifications. When these contractors are cited for violations, they assert that chapter 104 does not apply to them because the specific provisions were not included in the contract.

Your Committee finds that this situation has created enforcement problems for DLIR because DLIR does not have control over what is contained in every State and county construction contract. This erodes the level playing field for contract bidders since contractors who do not pay prevailing wages can underbid contractors who base their bids upon prevailing wages.

Although your Committee finds that this bill addresses concerns about fairness and equity for public works construction contracts, your Committee has concerns about the provisions allowing the release of information submitted on collective bargaining agreements.

Upon further consideration, this bill has been amended to:

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2525, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2525,

H.D. 1, and be referred to the Committee on Finance.